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Apple's iPhone Sales in China Fall 9% as Xiaomi Retakes Market Lead

Apple remains the only major smartphone vendor in China to see declining shipments, as local brands leverage subsidies and competitive pricing to dominate the market.

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Overview

  • Apple's iPhone shipments in China dropped to 9.8 million units in Q1 2025, marking a 9% year-over-year decline and reducing its market share to 13.7%.
  • This marks the seventh consecutive quarter of declining iPhone shipments in China, as Apple struggles to maintain its footing in a highly competitive market.
  • Xiaomi saw a 40% surge in shipments, reaching 13.3 million units and reclaiming the top spot in China's smartphone market for the first time in nearly a decade.
  • Government subsidies introduced in January 2025, offering a 15% rebate for electronics under 6,000 yuan, excluded most iPhones due to their premium pricing.
  • Analysts suggest that Apple's rigid global pricing strategy and lack of localized features, coupled with US-China trade tensions, have hindered its competitiveness in China.